Acxyn is an incredibly new experiment that aims to solve the issue of aligning the interests of stakeholders with the financial success of an organization. The Acxyn Continuous Organization (ACO) is a new type of organization designed to align stakeholders' interests significantly better than in traditional organizations. The ACO sets up a Continuous Intellectual Property Offering (CIPO) by funnelling part or all of its realized revenues to an Acxyn Decentralized Autonomous Trust (DAT). The DAT is a smart-contract that automatically issues, buys back, and cancels fully digital tokens called IPRTs (Intellectual Property Right Tokens) to meet market demand using predefined rules.

The tokenization of intellectual property is a novel way for organizations to receive financing without releasing any equity or governance rights. IPRTs are fully digital tokens that anyone can buy or sell to speculate on the organization's future revenues. The value and risk considerations for intellectual property collateral are broad concepts that encompass a variety of intangible assets, including patents, copyrights, trademarks, trade names, domain names, etc. The purpose of IP valuation is to obtain an objective value using reliable information such as industry data and market predictions on future sales.

The process of tokenizing intellectual property involves several steps. First, the organization identifies the intellectual property assets they wish to tokenize. Second, the value and quality of the intellectual property assets are assessed using evaluation methods such as EM algorithms and Kernel Density Estimation with Conformal Prediction. Third, the originators transfer the creditors' rights derived from the intellectual property assets to the CIPO through smart contracts and decentralized finance. Fourth, the CIPO issues IPRTs backed by the creditors' rights, representing the cash flows generated by the intellectual property assets. Fifth, the rights and interests of the investors are registered in the assets pool (Bonding Curve Reserves), ensuring their ownership and entitlement to the cash flows. Finally, the tokens can be traded on secondary markets, providing liquidity to investors.

Sigmoidal Bonding Curves are a dynamic tool for quantifying the value of IP rights owners, creditors, obligees, and governments. A bonding curve contract is a specific type of smart-contract that issues its own tokens through Buy and Sell functions. The buy and sell prices of tokens increase and decrease with the number of tokens minted, and the bonding curve contract is the counterparty of the transaction and always holds enough assets in reserve to buy tokens back, acting as an automated market maker (AMM). The token bonding curve model has interesting properties, including limitless supply, deterministic price calculation, and guaranteed and immediate liquidity.

There is a current problem for analysis of Intellectual Property Rights and Securities which includes the following issues:

1. Insufficient eligibility of intellectual property rights as underlying assets
2. Insufficient bankruptcy remoteness mechanism of IPRS
3. Intellectual property rights service agencies are external institutions
4. Many restrictions on IPRS investors
5. Low investor enthusiasm
6. Inadequate role of security exchanges
7. Lack of measures to compensate for IPRS failure

Additionally, the policies and regulations of IPRS for example, are inadequate, and there are few targeted policies for IPRS itself. The policies applied to IPRS are mainly aimed at credit securitization, and there are few preferential tax policies for IPRS itself. The existing IPRS cases mainly adopt the existing credit asset securitization model without considering the particularities of IPRS.

While the specific information on the problem analysis of IPRS is lacking. There is information on the policies and regulations of IPRS, operational models, and valuation of IPRS in general. The policies concerning IPRS mainly include;

**Interim Measures for the Supervision and Administration of Private Equity Funds**

**The Regulations on the Administration of Asset Securitization Business of Subsidiaries of Securities Companies and Funds Management Companies**

The current IPRS cases mainly adopt the existing credit asset securitization model without considering the particularities of IPRS, leading to problems such as insufficient eligibility of intellectual property rights as underlying assets, insufficient bankruptcy remoteness mechanism, external intellectual property rights service agencies, restrictions on IPRS investors, low investor enthusiasm, and inadequate measures to compensate for IPRS failure. The valuation of IPRS mainly uses the Income Present Value Method, which is not reasonable because it does not consider the stability and certainty of the patent rights. The small number and low prices of intellectual property rights also seriously affect the development of IPRS.

Based on the analysis of the current state of IPRS, there are several measures that can be taken to promote its development:

1. Expand the range of IPRS objects: Include not only the creditors' rights tied to intellectual property rights leasing, pledging, and licensing, but also the factoring rights of intellectual property right product sales contracts, future profits from implementation, and future equity income from investing in intellectual property rights.

2. Decrease the risk of intellectual property rights assets: Ensure that the underlying IPRS assets are high quality, technologically advanced, and highly valued intellectual property rights. Intellectual property rights owners should provide qualified analysis reports to evaluate the value and quality of their intellectual property rights.

3. Improve methods and mechanisms for intellectual property rights asset evaluation: Use scientific methods and mechanisms to evaluate intellectual property rights assets, considering factors such as cash flows, technological sophistication, financial elements, and management.

4. Establish internal intellectual property rights service agencies in SPVs: SPVs should have internal agencies to assess and evaluate intellectual property rights assets, reducing information asymmetry, risk asymmetry, and high service fees.

5. Lower the threshold for IPRS bond investment: Expand the range of investors for IPRS by allowing venture capital, technology transfer, and intellectual property rights operation institutions, as well as natural persons with the requisite qualifications or ability, to invest in IPRS bonds.

6. Improve IPRS products: Encourage the establishment of intellectual property rights auction markets, develop convertible bonds and equity products, and allow investors to become shareholders if a project is successful.

7. Reduce IPRS expenses: Establish long-term and close cooperative relationships between securities enterprises and service agencies to reduce service fees. Utilize government funds to subsidize IPRS service fees and establish risk funds pools to reduce risks.

8. Formulate preferential tax policies for IPRS: Incorporate preferential tax policies for IPRS into the category of preferential tax policies for the transformation of scientific and technological achievements.

9. Enhance the function of the government: Local governments can establish or enhance intellectual property rights commercialization risk fund pools and work with insurance companies to reduce risks. Government risk fund pools can subsidize IPRS service fees and reward successful IPRS projects.

These measures aim to address the issues identified in the analysis and create a more favorable environment for the development of IPRS. By expanding the range of IPRS objects, improving evaluation methods, lowering investment thresholds, and implementing supportive policies, the potential for IPRS to thrive can be realized.

What Acxyn can offer in this,

**Intellectual Property Rights Tokens**

Elements of an Acxyn IPRT system:

1. Intellectual Property Assets: These are the intangible assets that form the basis of the IPRT system. They can include patents, trademarks, copyrights, trade secrets, and other forms of intellectual property rights.

2. Originators: These are the entities or individuals who own the intellectual property assets and seek to tokenize them through the IPRT system.

3. Special Purpose Vehicles (SPVs) are Continual Intellectual Property Offerings or (CIPOs): CIPOs are created and use ERC-6551 contracts to hold the intellectual property assets and issue tokens backed by these assets to a Decentralized Autonomous Trust (DAT). They provide bankruptcy remoteness and serve as the legal entity through which the tokenization process takes place.

4. Creditors' Rights: These are the rights derived from the intellectual property assets that are transferred to the CIPO. They represent the cash flows generated by the intellectual property assets and form the basis for the tokens issued by the CIPO.

5. Assets Evaluation: This involves the assessment of the value and quality of the intellectual property assets. It includes methods such as EM (Expectation-Maximization) algorithms, Gaussian Mixture Models (GMMs), Kernel Density Estimation (KDE), and Conformal Prediction Methods for Finance to properly evaluate the rights and assets.

6. Security and Trust: The IPRT system relies on providing security and trust to investors and participants. This can be achieved through the use of Acxyn Decentralized Autonomous Trusts (DATs), zkproof smart contracts and decentralised finance to ensure transparency and immutability of transactions.

7. Interest Registration in the Assets Pool(Bonding Curve Reserves): The rights and interests of the investors are registered in the assets pool or Reserve Ratio of the Bonding Curves, ensuring their ownership and entitlement to the cash flows generated by the intellectual property assets.

Process of IPRT in steps:

1. Intellectual Property Identification: The originators identify the intellectual property assets they wish to tokenize.

2. Assets Evaluation: The value and quality of the intellectual property assets are assessed using evaluation methods such as EM algorithms and Kernel Density Estimation with Conformal Prediction.

3. Transfer of Intellectual Property Rights: The originators transfer the intellectual property rights derived from the intellectual property assets to the CIPO through smart contracts.

4. Issuance of Intellectual Property Rights Tokens (IPRTs): The CIPO issues IPRTs backed by the intellectual property rights, representing the cash flows generated by the intellectual property assets.

5. Interest Registration: The rights and interests of the investors are registered in the assets pool (Bonding Curve Reserves), ensuring their ownership and entitlement to the cash flows.

6. Trading and Secondary Market: The IPRTs can be traded on secondary markets, providing liquidity to investors. Acxyn will offer a inhouse Decentralized Exchange for Market Makers with AcX Dex.

The proposed Acxyn Continuous Organization (ACO) and Continuous Intellectual Property Offering (CIPO) model is a new paradigm for tokenizing intellectual property. It allows organizations to receive financing without releasing any equity or governance rights while strongly aligning the stakeholders' interests. The model uses a Decentralized Autonomous Trust (DAT) to automatically issue, buy back, and cancel fully digital tokens called IPRTs to meet market demand using predefined rules. The IPRTs represent the cash flows generated by the intellectual property assets and form the basis for the tokens issued by the CIPO. The model presents very beneficial properties for all stakeholders, including founders, employees, early investors, and the community of users, customers, suppliers, and partners of the organization.